Trouble Brewing In Missouri
The Missouri sports betting initiative was expected to be a slam dunk if it made the ballot. That is not the case, and now it might not even get on the ballot.
The Bulletin Board
NEWS: Missouri sports betting initiative faces lawsuit and possible opposition.
BEYOND the HEADLINE: DraftKings and FanDuel have given $10 million to the Missouri initiative.
WEEKEND CATCHUP: NFL renews NCPG deal; MAC mandates injury report; Ohio sends Bovada C&D; Is Maine ready for a retail sportsbook?
NEWS: Cardrooms and tribes are on opposite sides of a California bill.
AROUND the WATERCOOLER: Old vs. new Las Vegas.
STRAY THOUGHTS: Keep it to yourself.
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Missouri Sports Betting Ballot Initiative Runs Into Trouble
The Missouri sports betting ballot initiative nearly missed making the ballot, and the near-miss has led to a lawsuit trying to strike the initiative from the ballot.
Missouri law requires a ballot initiative to collect 8% of votes cast for governor in the last gubernatorial election (about 171,000). Further, it must meet the 8% threshold in six of the state’s eight congressional districts.
The sports betting initiative submitted nearly double the number of signatures needed. However, as Eilers & Krejcik Gaming (a newsletter sponsor) noted, districts 6 and 8 didn’t meet the threshold, and District 1 met the threshold by just 82 signatures.
The suit claims that Missouri Secretary of State John “Jay” Ashcroft improperly certified the ballot initiative in four possible ways:
To arrive at the 8% number, Ashcroft divided the total number of voters in the 2020 election at the district level, not the state level.
In so doing, the weight of a District 3 voter’s signature was less than a vote in District 1.
Ashcroft used pre-2020 districts – Missouri underwent redistricting since the 2020 election.
Signatures were improperly counted in District 1 (an 82-signature margin) and District 5 (a 1,154-signature margin).
Considering the margin in District 1, the initiative is hanging on by a string.
And here is where things get interesting.
Play USA’s Matt Kredell did a little digging and found that “According to their LinkedIn profiles, plaintiff Jacqueline Wood owns JWood Political Strategies, a campaign and governmental consulting and lobbying firm. Plaintiff Blake Lawrence has a consulting company and previously served as chief counsel for the Missouri Senate.”
As I’ve noted, an affirmative vote is far from a given. The most recent polling (38% in support, 35% against, and 25% unsure) indicates the initiative can’t survive a concentrated opposition campaign.
Where might that opposition come from?
Several corners.
First, there is the VGT industry, which has tried to tie the regulation of VGTs to sports betting in previous legislative sessions.
But there is another possible opponent.
The language of the initiative has a unique structure, with licenses limited to each casino’s parent company, Missouri’s six professional sports teams, and two online-only licenses.
That means that PENN Entertainment and Caesars would be limited to a single mobile betting skin even though each company operates multiple casinos in the state. As EKG noted, “Both of the above parameters shift market access power in the direction of sports stadia and online operators in a policy climate that still generally favors gambling incumbents.”
Beyond the Headline: That’s a Lot of Support Money
The Missouri initiative has plenty of big backers. It’s supported by the state’s professional sports teams and the nation’s largest commercial sports betting operators.
As the Missouri Independent reported:
“The sports wagering initiative was launched late last year after major sports teams and casino companies were frustrated again in passing legislation. The public-facing part of the campaign has been taken by the major pro sports teams, but the money — $6.3 million for the signature campaign — has been provided by the two largest online sports wagering platforms, FanDuel and DraftKings.”
“Days after the Missouri Secretary of State’s Office certified a Missouri sports betting ballot initiative for November, DraftKings contributed $3.5 million to the Winning for Missouri Education campaign fund, according to a Missouri Ethics Commission filing Friday,” Legal Sports Report’s Pat Evans wrote. “DraftKings and FanDuel have now contributed more than $10 million to the ballot initiative.”
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Weekend Catchup: NFL + NCPG Deal; MAC Mandates Injury Report; Ohio Sends Bovada C&D; Maine Retail Book
NFL renews partnership with NCPG: The NFL announced it will extend its partnership with the National Council on Problem Gambling (NCPG) for another three-year term with a $6.4 million funding commitment. The funding supports three NCPG initiatives: modernizing and strengthening the National Problem Gambling Helpline (1-800-GAMBLER), developing and implementing the Agility Grants program, and awareness efforts – including the ResponsiblePlay.org website.
MAC is the second conference to mandate injury reports: Per the AP, “The Mid-American Conference will require teams to provide player availability reports to the league at least three hours before football games this season, following a similar policy implemented last year by the Big Ten.” The Southeastern Conference (SEC) is also considering the same policy.
Ohio and Louisiana are the latest states to send Bovada a C&D letter: Bovada’s US footprint is shrinking like George Costanza in a pool. “The OCCC confirmed it sent a letter to the Curaçao-based gaming company on Aug. 6, informing Harp Media that such wagering through Bovada was illegal and in violation of state laws,” The Action Network’s Chris Altruda wrote. Ohio is now listed on the Bovada website as a state where it does not offer its services. And Robert Linnehan is reporting that Louisiana regulators sent a similar letter earlier this month.
Maine may finally approve its first retail sportsbook: As previously reported, Maine’s foray into sports betting has left one part of the industry behind: retail sportsbooks. That could change soon. The Portland City Council approved First Tracks Investments, doing business as Oddfellahs, for a liquor license last week, an important step in the process of adding in-person sports wagering. There are two potential speedbumps: the Maine Gambling Control Unit could deny the betting license, or the city could create ordinances prohibiting gambling.
California Bill Pits Tribes Against Cardrooms
The Los Angeles Daily News Editorial Board came out against two pieces of legislation last week, one of which is SB 549, which would give California tribes one-time standing to sue cardrooms.
The LA Daily News wrote:
“SB 549 should be set aside. California has enough actual problems to deal with. This bill will only throw local government budgets into uncertainty and make a mockery of our judicial system.”The California Assembly Appropriations Committee recently approved the bill.
In a separate op-ed, several tribal leaders framed their support of SB 549 as protecting tribal gaming rights under the title “No More Broken Promises.”
At issue are the player-banked card games offered at California’s commercial cardrooms. Tribes claim the cardrooms illegally offer casino games like blackjack and baccarat in a dispute that has been going on for many years and has taken many twists and turns.
I’ve written about it many times for anyone who needs the backstory: How California Cardrooms Are Able To Offer House-Banked Games.
California Nations Indian Gaming Association (CNIGA) Chairman James Siva highlighted the importance of the bill, noting “previous Tribal lawsuits seeking a hearing on these cardroom-controlled games were dismissed in both state and federal court not on the legal merits of the practice, but merely on procedural grounds. SB 549 would give Tribes legal standing.”
Cardrooms have pushed back. The California Gaming Association believes its member cardrooms “are already subject to strict regulatory oversight” and that the bill would simply create a financial burden that would hurt the industry, the municipalities they are licensed in, and the consumer.
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Around the Watercooler
Social media conversations, rumors, and gossip.
Daniel Negreanu posted on X about the new Las Vegas:
Another X user posted the entire Ace Rothstein monologue from Casino:
This aligns with my recent feature column titled Convenience Over Interactions:
“The Las Vegas I first visited more than two decades ago was built on value and perks. The theory was that if you give customers cheap or comped rooms, some show tickets, affordable dining options, and a little taste of the high-roller lifestyle, they would spend their money at your gambling tables and machines and become loyal customers, at least to some extent.
“[…]
“Visit Las Vegas during Super Bowl week now, and you won’t find a cheap hotel room until you hit the city limits in Reno. There aren’t any reasonable dining options anymore or an available table for a private Super Bowl party.
“The room will have surge pricing, you’ll pay resort and parking fees, and every meal (a high-end celebrity chef restaurant or fast food) will be over-priced. Inquire about a perk, and they’ll run your player card number to see if you qualify… and you probably don’t. There are no such things as loss-leaders anymore.”
Stray Thoughts
I posted this six years ago on Facebook (thanks Facebook memories), and it still rings true today:
“Apropos of nothing in particular: It will never cease to amaze me how people who've been on social media (Facebook, Twitter, whatever) for years somehow don't understand that people can see and reply to things they post. It's actually pretty simple: If you “don't want to deal with it,” if “you were posting just to post it,” or “you didn't post something to have a debate,” then don't post it on social media!
“Simple.
“Try discussing it with your friends or family instead. This isn't some private space you've created. The minute you post some polarizing opinion/belief here or on Twitter, you're inviting everyone who can see it to comment.
“What the hell do you think is going to happen?”